Investing In Diamonds Can Be A Profitable Venture

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By Daniel Chapman


Over the past 40 years, there has been a price increase in fancy blue diamonds. Their value has gone up. In five year increments, the price has grown by 100 per cent. Natural fancy pink and yellow versions have also seen a price increase. The pink have doubled in value. Investing in Diamonds is now of interest to many investors, especially jewelers.

They increase and decrease in value in response to the economy. The colored ones are rare and for that reason continue to grow in price. However, that is not the sole reason for an investor to take interest in buying the colored variety.

The majority of countries around the world have no legal requirement for them to be reported and taxed. Also, they are compact and require a small amount of space to store. Most of the rarest colored stones are owned by jewelers. They are not inclined to sell them very often.

The rarity is as follows; when 10,000 carats of diamonds come out of the mines, only a single carat is classified as colored. Some of the colors are more valuable than others. Brown stones are currently popular. They are modestly rare compared to the violet, blue, red and green stones.

An investor has two options. He or she can purchase stock in a mining company, or purchase the actual jewels. Of course, when it comes to the colored ones, it is more difficult to buy them. They are not always available. They are exceptionally beautiful and exceptionally rare.

As is true with many investments there are some drawbacks. If you have a need to liquidate assets, they are not something you can sell quickly. An expert must evaluate their worth before they are ready to sell.

It is nothing like the situation with selling silver and gold. These precious metals have a standard price and are sold according to weight. The jewels have a value that depends on so many other features. One stone is brighter. Another may have a more attractive cut. It takes a jeweler to evaluate them.

There are numerous factors to consider when evaluating these gem stones. Two of equal carat weight can have different price tags. One or the other may be brighter or more skillfully cut. While gold and silver are measured by weight, it is difficult to gauge if one diamond has more monetary value than the other.

The community of jewelers continue to attempt creating a pricing scale for the stones. But, it is difficult. If they could succeed in inventing such a scale, it would make investing in Diamonds a more viable expenditure. One gemstone may be suitable to sparkle on fine jewelry. Another may be dull and used only to make glass cutting devices.




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